Invoice Factoring Services in San Antonio, TX
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How to turn unpaid invoices into immediate cash for your small business.

Invoice Factoring: Complete Guide for Small Business in Texas

For most small businesses in Texas, the amount of cash in their bank account goes up and down throughout the year based on when clients pay, when payroll hits, and when big purchases arrive. When clients are paying on time and money is flowing, times are good, but when invoices are delayed and cash flow goes negative, it can stop a business in its tracks.

During those tough times, business owners with good credit scores often turn to traditional bank loans or lines of credit, but when options are limited invoice factoring can be one of the best solutions for getting cash quickly.  

What is Invoice Factoring?

Invoice Factoring, also called accounts receivable factoring, is a financial service that allows you to convert your outstanding invoices into immediate cash. With invoice factoring, you are selling some or all of your invoices to an invoice factoring company in exchange for working capital to buy the materials you need, cover payroll and any other expenses. Unlike traditional financing, invoice factoring basis approvals primarily on the strength of the business you are invoicing, and not your personal credit, allowing for faster and more flexible funding. 

Is Invoice Factoring right for your small business?

Invoice factoring can be a great solution for small businesses who need fast access to capital and have limited access to traditional financing. Here are few of the main reasons people choose invoice factoring:

Slow Paying Clients

Many small businesses, and especially construction companies, struggle with cash flow because of long invoice payment timelines. Invoice Factoring can help bridge the gap and provide funds when you need them most.

Limited Access to Financing:

Just because the bank said no, doesn’t mean you can’t get cash for your business.  Whether you only have an ITIN, have a challenged credit history, or are just starting a new business, invoice factoring can be a great option to help you get cash for your business.  

Need Cash Fast

Even if you have access to traditional financing, sometimes you need cash faster than a bank can process paperwork.  Payroll coming this Friday?  Need to purchase materials before a job can start this week?  Invoice factoring approvals can be a few days or even hours instead of weeks like traditional loans, helping you cover expenses ASAP.    

Ready to turn your unpaid invoices into cash?

How do factoring companies work?

Each factoring company in Texas works a little differently, but at Crédito Real USA Business Capital, we pride ourselves on offering a simple and transparent factoring process.  

Step 1: Complete an invoice factoring application like this one.

Step 2: Send a valid invoice to an invoice factoring company like Crédito Real USA.

Step 3: Crédito Real USA will then purchase this invoice as an asset and provide you between 70-90% of the face value immediately to cover your expenses.

Step 4: When your client pays the invoice, we pay you the remaining balance, minus our factoring fee, which ranges between 3-5% of the face value of the invoice.  

Here is an example to better understand the process with real numbers:

Let’s imagine you’re a construction contractor that has just finished work on a new building. You send an invoice for $10,000 to your client or GC and expect to be paid by in 30 days. Suddenly, a new job opportunity arises, but you need cash to cover payroll and materials for the new job. You “sell” or factor your invoice with Crédito Real USA and we provide up to $7,000 immediately for you to cover those costs.  When 30 days arrives, you’re client pays the invoice, and we pay you $2,500, the remaining balance minus our 5% factoring fee.

What do you need to apply for invoice factoring in San Antonio, TX.

Crédito Real USA Business Capital make applying for invoice factoring as simple as possible.  As one of the best invoice factoring companies in San Antonio, Texas, we work with you to get funding quickly. Although requirements can vary among different invoice factoring companies,  the following list represents what you need to apply with Crédito Real USA:

  • A government issued photo ID
  • Social Security Number or ITIN
  • Six months of bank statements. 
  • Articles of Incorporation if it is an LLC or Assumed Name if it is a DBA.
  • Copy of one or more invoices from a valid business
  • Contract or purchase order for work related to the invoice

Invoice Factoring: Advantages and Disadvantages

Advantages:

  • Fast cash advances: Almost the entire amount of your invoices will be paid in advance. You don’t have to wait for your projects to be paid before starting planning for the next ones. 
  • Better chances of growing your business: You can rest easy knowing your business has better chances of succeeding because you will always have the option of getting working capital when needed.
  • More Flexible than a Loan: Since factoring is a short-term funding resource, applying only takes a few days and it is easier to get approved compared to a traditional bank. Funding is predominantly based on your clients business strength, providing for more flexibility. 
  • No additional collateral Required: Factoring is based on your invoices so there is no need for a collateral asset.

Disadvantages:

  • For business use only: Invoice Factoring from Crédito Real USA only works if the invoices presented come from another business. Contracts with individuals are not accepted when requesting factoring services.
  • Not for fast paying clients: Factoring is designed for businesses that get paid on timelines of 30 days or more. If a business gets paid for its services on a day-to-day basis, factoring may not be convenient. 
  • Can be expensive: Factoring companies often charge extra fees if an invoice is not paid before the date agreed. If a client fails to pay, the business may have to cover the amount of money given in advance.

Invoice Factoring Cost: How much do invoice factoring services cost in San Antonio Texas?

At Crédito Real USA, the factoring rates range between 3-5% of the face value of your invoice.  The better the business strength of your client, the lower the fee.  For example, for an invoice of $10,000, at the factoring rate is $500 for 5%. For an invoice of $20,000 the factoring rate is $1000 and so on. The 3-5% fee is charged on a 30-day basis. If the invoice is overdue and it takes more than 30 days to be paid, 1.25% are added for every extra week.

Are there any hidden fees?

Different business factoring companies can have additional fees for their services. However, at Crédito Real USA there are no extra fees apart from the ones presented above.

Invoice Factoring: Advantages and Disadvantages

Advantages:

  • Fast cash advances: Almost the entire amount of your invoices will be paid in advance. You don’t have to wait for your projects to be paid before starting planning for the next ones. 
  • Better chances of growing your business: You can rest easy knowing your business has better chances of succeeding because you will always have the option of getting working capital when needed.
  • More Flexible than a Loan: Since factoring is a short-term funding resource, applying only takes a few days and it is easier to get approved compared to a traditional bank. Funding is predominantly based on your clients business strength, providing for more flexibility. 
  • No additional collateral Required: Factoring is based on your invoices so there is no need for a collateral asset.

Disadvantages:

  • For business use only: Invoice Factoring from Crédito Real USA only works if the invoices presented come from another business. Contracts with individuals are not accepted when requesting factoring services.
  • Not for fast paying clients: Factoring is designed for businesses that get paid on timelines of 30 days or more. If a business gets paid for its services on a day-to-day basis, factoring may not be convenient. 
  • Can be expensive: Factoring companies often charge extra fees if an invoice is not paid before the date agreed. If a client fails to pay, the business may have to cover the amount of money given in advance.

Invoice Factoring Cost: How much do invoice factoring services cost in San Antonio Texas?

At Crédito Real USA, the factoring rates range between 3-5% of the face value of your invoice.  The better the business strength of your client, the lower the fee.  For example, for an invoice of $10,000, at the factoring rate is $500 for 5%. For an invoice of $20,000 the factoring rate is $1000 and so on. The 3-5% fee is charged on a 30-day basis. If the invoice is overdue and it takes more than 30 days to be paid, 1.25% are added for every extra week.

Are there any hidden fees?

Different business factoring companies can have additional fees for their services. However, at Crédito Real USA there are no extra fees apart from the ones presented above.

What Customers Have to Say About Our Services

Crédito Real has helped me because they provide me with the immediate cash that I need to continue working. I would recommend them because they’ve never failed me.
Ramon Rodriguez
DR Eight Construction
5/5
Crédito Real provided me the cash flow and helped with payroll to grow my business. Now, big businesses are more willing to work with me because I have the capital and workforce to keep meeting their needs and projects.
Jose Chairez
Kerch Services
5/5
I would recommend Crédito Real to other companies because it will give you the possibility to expand your business and run it in the proper way. They are very easy to work with because they understand the business.
Billy Ward
Comal Creek Construction
5/5

Visit Us in San Antonio, Texas

There’s no replacement for seeing client’s face to face, so if you have questions , would like to fill out an application in person, or just want to meet us, head over to our San Antonio, Texas location.

Building Exterior

Address:

Credito Real USA – Business Capital

103 Biltmore Street, Suite 210

San Antonio, TX 78213, United States

Phone Number

Working Hours

Sun:   Closed
Mon:  9:00 AM – 5:00 PM
Tue:   9:00 AM – 5:00 PM
Wed:  9:00 AM – 5:00 PM
Thu:   9:00 AM – 5:00 PM
Fri:     9:00 AM – 5:00 PM
Sat:    Closed

Driving Directions

Crédito Real USA Business Capital’s San Antonio location can be found on the north west corner of the intersection between Loop 410 and Blanco Road.  To access our location you need to be heading west on the access road of 410, past Blanco and will turn on Biltmore Road.  You will see our building on the left and once you arrive, head inside and immediately upstairs to find our office. You will know if you are in the right area if you see Guajillo’s The Shortcut to Mexico and Kobe Steakhouse.

FAQs

How quickly can I get paid with invoice factoring?

With Invoice Factoring you can get funding upfront as fast as one business day and even a few hours if you already have a good relationship with your invoice factoring company.  

How is Invoice Factoring Different from a Bank Loan?

Invoice Factoring works faster than a bank loan,it can be secured even when having a poor credit history, acquiring the steady cash flow factoring offer will keep you away from debt. Bank loans  are based on your creditworthiness, funding is not as fast since the application process can take longer and business loans usually require long-term contracts that can leave you in debt. 

How is Invoice Factoring different from Invoice Financing?

Invoice factoring is about selling your invoices or accounts receivables in order to get immediate cash, this is done with a discount rate that the factoring company will charge for the services. On the other hand, Invoice Financing is better described as a loan were a business must use their accounts receivables as collateral to qualify. In this case the amount of the loan is usually based on the invoice amount. 

What is the difference between Recourse Factoring and Non-recourse factoring?

Recourse Factoring a type of service where the debt of an overdue invoice will have to be paid by your business to the factoring company if it not paid by your client. Non-recourse factoring on the other hand, is paying extra fees as a type f “insurance” where if your client does not pay for the invoice, your business will not be charged in consequence. 

Most invoice factoring deals are recourse factoring, meaning that the invoice must be paid by either you or the client .  

What’s in the factoring agreement?

An invoice factoring agreement should detail the fees, amounts, limits, events of defaults and designates the applicable laws and legal venue.

Solve Your Cash Flow Today: Immediate Funds for Your Unpaid Invoices